If You're talking about this month's cycle, the RUT actually settled Friday morning at $607.90. Considering how much can happen between Thursday's...
If you have the TOS platform, I'd recommend trading a few spreads in papermoney first just to get comfortable with the mechanics. Also, have a...
Or, you can take the time to learn about options and their various characteristics, do some research, build a watch list and employ a strategy or...
Illiquid options have several factors stacked against you. 1. They usually have wider bid/ask spread 2. It's more likely that when you trade...
I agree stops can be dangerous, especially with gap downs on market open or other unusual events. I do use them though it's usually not my...
I guess it depends on how you plan to backtest. Many times people use an automated system where they can set their entries and exits...
This trade looks like a pretty decent setup. Nice find. My bias tends to look for the bounce, which is often like trying to catch the falling...
Keep in mind that options prices are set by the market - meaning the price reflects what the market will bear. Assuming a given option is fairly...
The trouble is prices are rarely constant over any stretch of time. So for analysis' sake I guess it helps to look at it this way but consider...
My favorite book is probably "Option Volatility and pricing" by Sheldon Nateberg. It provides a really good coverage of the foundational concepts...
It depends on what kind of trader you are. Frankly, in this market, it's pretty tough to do well unless you happen to get lucky and have some long...
I'm not sure if this is what you're looking for or not, but Thinkorswim now offers two kinds of backtesting. Their thinkback feature allows you to...
Kevin, More important than picking the right stock to do a covered call on is having a solid trading plan. I assume you do. Make sure you know...
I'd say it is possible to make money on a $5k account if your expectations are properly set (and many of the other great suggestions from the the...
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